Your North Carolina Income Tax Cut Is Coming — But There’s a Catch

Close-up photo of a North Carolina state flag waving in the wind against a blue sky.

Income tax cuts are coming to North Carolina, or are they? Thanks to a landmark law passed just a few years ago, Tarheel State taxpayers are slated to see personal income tax rates trigger annually downward until 2028. But a new legislative push seeks to hit the brakes.

Gov. Josh Stein (D) and some Republican state House leaders are warning of a $2.8 billion to $3.5 billion budget shortfall over the next two years. That could potentially threaten funding for critical services unless the income tax cuts are paused.